March 30, 2017

Dear Shareholders & Customers,

This report covers a year of growth for Bankers’ Bank. 2016 included a host of enhancements, additions, and work based around four major goal centers.

Improve return to our shareholders.
We are pleased to announce that Bankers’ Bancorporation earned net income of $3.567 million or $186 per share in 2016. Shareholders of record received dividends of $47.00 per share representing an increase of 91% over the dividend paid in 2015. All of us are proud to be able to provide our shareholders a dividend for the thirty-fifth consecutive year. Shareholder’s equity totaled $61.725 million, resulting in a book value of $3,623 per share. Tier one leverage ratio at year-end 2016 was 12.18%. Providing strong capital levels for our shareholders and customers is essential to meeting our mission.

Increase net interest income.
Bankers’ Bank loan window is open. This includes providing bank stock loans as well as partnering with our customers for loan participations. Our goal was to improve our processes, provide best-in-class service, and serve credit needs with faster turnaround times to match customers’ sense of urgency. As a result 2016 saw a significant increase of net interest income of 59.85%.

Launch new and enhanced products.
Bankers’ Bank now provides an even wider array of correspondent bank services. From Same Day ACH to ALM Driver to BB Connect to Commercial Leasing On-Line Applications, Bankers’ Bank continues to build on the innovations you need to work efficiently and competitively.

Add more customers across all product lines.
Within the 2016 Highlights included in this report, you’ll see increased customers in all business lines in all four states we serve. We grew our cash letter customers at a pace faster than anytime over the last five years. Adding new customers is essential to meeting our mission, and with two new Correspondent Bankers in Southern Wisconsin and Northeast Illinois we can increase calling efforts across all of our markets.

During 2016, I met with community bank leadership teams and visited the communities our shareholders and customers serve. In one of these visits, the CEO of a community bank and a founding investor in Bankers’ Bancorporation, expressed how the mission of Bankers’ Bank is “more important now than ever in our 35 year history.” These words had a significant impression on me and I shared the sentiment with our employees. We’re energized about the future of our industry, the new opportunities we can offer our shareholders and customers, and the exciting prospects for us all.

On behalf of our entire team, thank you for your support and the opportunity to serve you.

Bradlee F. Stamper

President & CEO

2016 Report *

* please log in to view customer documents